FTB Head of Household Notice of Proposed Assessment

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Message Board FTB Head of Household Notice of Proposed Assessment

This topic contains 10 replies, has 6 voices, and was last updated by Lynn Freer 6 days, 12 hours ago.

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  • #33749
    Michael Wentworth
    Participant

    FTB sent taxpayer a NPA denying their HOH filing status.  Taxpayer filed the FTB Form 3522 with their 2017 Form 540 and noted that the "qualfiying person" was a FT student under age 24 in 2017 and that the "qualifying person" lived with the taxpayer 288 days of 2017.  The NPA said the HOH filing status was being disallowed because the "qualifying person's gross income exceeds the allowable amount for the tax year in question".  The "qualifying person" gross income on the Form 3522 was ~$9,000.  However, this gross income amount should be irrelevant sicne the "qualifying person" is the taxpayer's "qualifying child".  Why is the FTB computer system not able to make that determination based on the Form 3522?  Why does the taxpayer now need to incur additional fees to respond to the NPA that the FTB should be able to not send based on proper screening of the Form 3522 completed?  Has the FTB been advised about the NPA being sent?

  • #35441
    Anonymous

    I only have a few HOH clients, but I don't usually put in the gross income if the child is a qualifying child, since it is not applicable.  I agree the instructions and the computer should be able to ignore this field if qualifying person is a QC.

    • #120511
      NULL

      I have referred this to the FTB. I think there is a problem.

  • #35444
    Lynn Freer
    Participant

    Not sure why my post said anonymous but it's from Lynn Freer. I'm following up on this as well.

    • #35446
      Anonymous

      Spoke to FTB.  They said it's because Lacerte trasmitted information incorrectly, we have to file a protest.  Will Spidell work with FTB to find an easier solution to that?

      • #35447
        Michael Wentworth
        Participant

        That is what the FTB told me last week when I called them after I received the first NPA.  It's my understanding that the FTB is aware of situation.  I also called Lacerte on Monday (10/15/2018) and they said they would be "investigating" the issue.  I am hopeful Lacerte will contact the FTB to address the issue.  However, I recommend calling Lacerte so they know it is not an isolated incident and possibly make them move a bit faster with contacting the FTB.  If you call Lacerte, my case number is 527375342.  It may help them understand the magnitude of the problem.

      • #35448
        Michael Wentworth
        Participant

        That is what the FTB told me last week when I called them after I received the first NPA.  It's my understanding that the FTB is aware of situation.  I also called Lacerte on Monday (10/15/2018) and they said they would be "investigating" the issue.  I am hopeful Lacerte will contact the FTB to address the issue.  However, I recommend calling Lacerte so they know it is not an isolated incident and possibly make them move a bit faster with contacting the FTB.  If you call Lacerte, my case number is 527375342.  It may help them understand the magnitude of the problem.

        • #35450
          Lynn Freer
          Participant

          Thanks to Mike's posts, we sent a flash email on this. If you didn't get it, go to the news tab on the website

  • #124826
    Gina Levy
    Participant

    Not a Lacerte user, but got a similar notice for a client with a child age 14. Spoke to FTB Hotline today, they say they have corrected the problem, but no change for my client. I still have to file a protest. Clearly the problem has not been solved.

  • #125363
    Lynn Freer
    Participant

    I’m checking on this again. FTB says they aren’t aware of problems. If you could email me contact info I’ll get it right to the proper department lynn.freer@spidell.com

  • #35443
    Anonymous

    Since my original post I’ve had two more people call with the same NPA. I sent an email to the FTB taxpayer advocate on Friday but received no response.  Hopefully, she will respond that the FTB will be correcting this issue immediately.